There's new churn in Barclays' under-performing equities unit. Neal Hallett, head of EMEA cash equities at Barclays, has departed the bank.
Hallett worked at Barclays for nearly four years, having joined from Bank of America Merrill Lynch in May 2013. Before this, he spent two years as head of EMEA program trading at J.P. Morgan. He left Barclays in early February.
Barclays’ equities team has been struggling more than most other investment banks. Revenues were down by 41% in the first nine months of 2016 – this was the biggest year on year decline at any major investment bank. Deutsche Bank was closest with a 25% fall.
It doesn’t help that Barclays’ equities team has been under-performing just as its new investment bank CEO Tim Throsby takes the reins. Throsby joined as CEO for Barclays’ corporate and investment bank in January, and has a background as an equities man.
Throsby joined from J.P. Morgan, where he was global head of equities. It was the only investment bank to report an increase in equities revenues in 2016 (albeit by 1%), and the bank increased increased revenues from $4.5bn in 2012, to $5.7bn in 2015 and has helped J.P. Morgan move up the league tables.
Hallett is the second major departure from Barclays’ equities team in the past six months. Jonathan Beebe, head of global equities liquid markets, left in September last year to “take a break from the industry”.
Equities is a perilous place to work right now. Morgan Stanley has continued to cut back sales and trading professionals in its equities team. Aside from J.P. Morgan, Morgan Stanley was the best performing U.S. bank in equities, with a 3% year on year decline in revenues.
Meanwhile, Deutsche Bank is also still rolling out cuts across its sales and trading functions. While sales teams, rather than any one business area, are thought to be disproportionately hit, Jonathan Potter, its head of European equity sales, is among the departures.